Chainalysis Acquires Hexagate to Strengthen Blockchain Security Amid Rising Crypto Hacks

Blockchain analytics powerhouse Chainalysis has announced the acquisition of Hexagate, a Web3 security firm, in a strategic move to combat the increasing frequency of crypto hacks and exploits. This integration marks Chainalysis’ shift from investigative efforts to proactive threat prevention across blockchain networks.

“Together, Chainalysis and Hexagate provide a holistic risk solution that includes prevention, compliance, and remediation,” said Chainalysis CEO Jonathan Levin in the official statement.

Source: Chainalysis

While the financial details of the deal remain undisclosed, the acquisition emphasizes Chainalysis’ commitment to fostering trust within the crypto ecosystem.

Hexagate’s advanced machine learning tools are set to become a core component of Chainalysis’ platform. These tools specialize in detecting and mitigating on-chain risks such as hacks, cyber exploits, and governance vulnerabilities. To date, Hexagate has protected over $1 billion in customer funds through real-time threat detection and automated responses.

The firm’s clientele includes high-profile crypto companies like Coinbase, Consensys, and Uniswap. According to the announcement, Hexagate successfully identified and thwarted over 98% of known hacks before they occurred over the past two years.

A Broader Response to Rising Crypto Crime

The timing of this acquisition aligns with alarming trends in crypto crime. Chainalysis’ August report highlighted an 84% year-on-year spike in stolen funds, with losses climbing from $857 million to $1.58 billion in the first seven months of 2024.

Ransomware payments also edged higher, reaching $459.8 million, making 2024 potentially the costliest year for ransomware attacks. The crypto ecosystem’s challenges don’t stop there—investment fraud in the U.S. hit $4.57 billion in 2023, with crypto-related scams accounting for 87% of those losses.

Despite these challenges, Levin remains optimistic. “Web3 can be the world’s safest financial system when equipped with the right tools,” he stated, underscoring Chainalysis’ mission to enhance security and restore investor confidence.

As crypto thefts and scams continue to surge, the integration of Hexagate’s cutting-edge security technology positions Chainalysis as a pivotal player in safeguarding the future of blockchain and decentralized finance.